Tag Archives: ITO

In the absence of new material facts, the principle of consistency applies and school’s surplus cannot be assessed separately when integrated into the parent board’s accounts.

By | August 1, 2026
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In the absence of new material facts, the principle of consistency applies and school’s surplus cannot be assessed separately when integrated into the parent board’s accounts. Issue Whether the surplus/income of a school can be separately assessed in its hands under Section 144 of the Income-tax Act, 1961, when it claims to be part of… Read More »

Interest under Section 28 of Land Acquisition Act Forms Part of Compensation, Not Taxable under Income from Other Sources

By | July 27, 2026
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Interest under Section 28 of Land Acquisition Act Forms Part of Compensation, Not Taxable under Income from Other Sources Issue Whether interest received on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 is taxable as ‘Income from Other Sources’ under Section 56(2)(viii) or forms part of the compensation itself. Facts Compulsory Acquisition:… Read More »

Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty

By | July 25, 2026
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Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty Issue Levy of Penalty under Section 270A for Inadvertent Expense Claim: Whether penalty under Section 270A for under-reporting of income can be levied when an assessee inadvertently claims 100% of pre-incorporation expenses instead of 1/5th under Section 35D, but offers… Read More »

Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt

By | July 22, 2026
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Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt Issue Whether ex-gratia/settlement amounts received by an employee upon opting for voluntary retirement under an employer’s financial scheme constitute a non-taxable capital receipt or taxable income under Section 56(2)(xi) / Section 17 of the Income-tax Act, 1961. Facts Background & Receipt: The… Read More »

No section 68 addition is sustainable for an alleged cash loan without any credit entry in the assessee’s books.

By | July 9, 2026
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No section 68 addition is sustainable for an alleged cash loan without any credit entry in the assessee’s books. Issue Whether an addition under section 68 of the Income-tax Act, 1961 can be legally sustained when there is no credit entry in the assessee’s books of account, and the addition is based entirely on a… Read More »

An asset transferred via a slump sale cannot be isolated and taxed again upon registration.

By | July 9, 2026
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An asset transferred via a slump sale cannot be isolated and taxed again upon registration. Issue Whether the revenue department can separately tax the subsequent registration of a conveyance deed for an immovable property under Section 50C in a later assessment year, when that specific asset was already transferred and taxed as part of a… Read More »

Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals

By | July 4, 2026
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Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals Issue Whether a Section 69A addition for unexplained cash deposits totaling ₹48 lakhs can be sustained when a co-owner’s tax proceedings have already validated the primary source of the funds and the remaining deposits are backed by documented bank withdrawals. Facts… Read More »

Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution

By | June 27, 2026
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Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Issue Whether the Commissioner (Appeals) was legally justified in rejecting a rectification application under Section 154 when the original order restricted a housing project’s deduction under Section… Read More »

Final Assessment Order Passed in the Name of an Amalgamated, Non-Existent Entity is Void

By | June 23, 2026
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Final Assessment Order Passed in the Name of an Amalgamated, Non-Existent Entity is Void Issue Whether DRP directions and a final assessment order passed under Section 143(3) read with Sections 144C(13) and 144B in the name of an erstwhile amalgamated company are valid, when the fact of amalgamation and subsequent name change had already been… Read More »

Trading results accepted without rejecting book accounts bars Section 68 additions for demonetization cash deposits.

By | June 20, 2026
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Trading results accepted without rejecting book accounts bars Section 68 additions for demonetization cash deposits. Issue Whether cash deposits made by a jeweler during the demonetization period can be treated as unexplained cash credits under Section 68 when the deposits originate from recorded sales that are fully supported by books of accounts, VAT returns, and… Read More »